KUALA LUMPUR (July 18): Troubled TH Heavy Engineering Bhd (THHE) rose as much as 1.5 sen or 23.08% to 8 sen in active trade today on bargain hunting, after the stock got recently battered.
THHE, the third most active counter in the local bourse, saw 22.96 million shares traded as at 11.48am.
Sam Ng, remisier at Inter Pacific Securities, said the share price of THHE went up mainly because of active trading and bargain hunting. However, he believes there is limited upside for the counter.
“The share price will be hovering around 7.5 sen and 8 sen in this few days,” Ng told theedgemarkets.com.
He noted that in early July, the counter’s share price was still at 10 sen level. Year-to-date, the counter's share price had plummeted 52.94%.
Shares in the oil and gas facilities fabrication company, 29.81%-owned by pilgrim fund Lembaga Tabung Haji (LTH), took a beating to plunge from 7 sen from 10 sen in early July, after another two winding-up petitions were filed against the company by MIB Italiana SPA and Orwell Offshore Ltd to claim for US$ 1.27 million and US$7.61 million respectively.
Earlier in June 3, Soft Triangle Services Sdn Bhd had filed a winding-up petition against THHE to claim RM2.71 million, but the case was resolved between both parties and Soft Triangle withdrew the petition.
Ng pointed out that the net asset per share attributable to ordinary equity holders of the parent stood at 54 sen, as at first quarter ended March 31, 2016.
The Edge Weekly reported there could be more surprises at THHE, after bankers and financiers that had lent money to THHE were said to be jittery over the company’s dampening prospect and were considering its business viability.
For the 1QFY16, it suffered a net loss of RM33.44 million, from RM14.52 million of sales.
The company suffered from dwindling revenue and lack of new projects. As at March 31, 2016, its outstanding main fabrication order book stood at RM132.6 million and outstanding minor fabrication, crane manufacturing and repairs and supply of equipment order book stood at RM9.4 million.
THHEAVY (7206) - Hot Stock: THHE jumps 23% on active trading, bargain hunting